Consider the goods market model where consumption is given by: C = Co + C(Y-T), investment...

 

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Consider the goods market model where consumption is given by: C = Co + C₁(Y-T), investment is given by: I = bo + b₁Y - b₂i, and G and T are given. Assuming Co 100, C1 = 0.6, bo = 150, b be the change in the equilibrium = = 0.2, and b₂ = 1,000. Keeping all other things constant, what will output (Y*) in the goods market if G is increased by $100? $500 $100 $125 $250 All of the answers here are incorrect Consider the goods market model where consumption is given by: C = Co + C₁(Y-T), investment is given by: I = bo + b₁Y - b₂i, and G and T are given. Assuming Co 100, C1 = 0.6, bo = 150, b be the change in the equilibrium = = 0.2, and b₂ = 1,000. Keeping all other things constant, what will output (Y*) in the goods market if G is increased by $100? $500 $100 $125 $250 All of the answers here are incorrect

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Introduction Explomation The goods market C co 4 11 a Co Conclusion Investment is given by I b b Y ... View the full answer